Sales and Use Tax

Lodging TaxAmounts Collected by
Local Governments, Calendar Year 1998

Ohio's Revised Code permits local governments to levy a tax
on lodging furnished to transient guests by hotels and motels
within their jurisdiction. Municipalities or townships may
levy a lodging tax of up to 3 percent, plus an additional tax
of up to 3 percent if they are not located (wholly or partly)
in a county that has levied a lodging tax. Counties may levy
a lodging tax of up to 3 percent, but can not initiate such a
tax in any municipality or township that has levied the
additional lodging tax.

In addition, Ohio law permitted the enactment of several
special lodging tax levies during a limited period of time.
During a three month period in 1985, counties were authorized
to enact an additional lodging tax for convention center
construction (Lucas County enacted such a tax at 3 percent).
During a six month period in 1988, County Convention
Facilities Authorities were authorized to enact an additional
lodging tax for financing a new convention or sports center
(Franklin, Guernsey, and Muskingum County CFA's enacted such
a tax). Counties were permitted to enact an additional
lodging tax for port authority educational and cultural
facilities during a three month period beginning in 1992
(Cuyahoga County enacted such a tax at 1.5 percent for the
rock and roll hall of fame). Counties were authorized to
enact an additional lodging tax for municipal educational and
cultural facilities during a three month period in 1993
(Summit County enacted such a tax at 1.5 percent for
Inventure Place). Finally, Lucas County enacted a special
lodging tax under a 1997 law, with the proceeds used by the
county convention and visitors bureau to be used to promote
and market the region.

The maximum combined tax rate permitted in most locations is
6 percent. However, due to the enactment of special lodging
taxes, in several counties the maximum combined tax rate
exceeds 6 percent. These counties and their maximum tax rates
(as of December 31, 1998) are: Cuyahoga (7.5%), Franklin
(10%), Guernsey (9%), Lucas (7%), Muskingum (8%), and Summit
(7.5%).

For most municipalities and townships, revenue from the
lodging tax goes to the general revenue fund. However, for
municipalities or townships that levy the additional tax of
up to 3 percent, the revenues from the additional tax are
divided between the general revenue fund of the municipality
or township and the convention and visitors' bureau (at least
50 percent) operating in the county. To those municipalities
and townships within the county that do not levy a lodging
tax, counties are required to return a uniform percentage
(not to exceed 33 1/3 percent) of the revenue from the county
lodging tax generated within such municipalities or
townships. The remainder of the revenue is deposited in a
separate fund to be used for county convention and visitors'
bureau expenses.

Fifty-six counties, 91 townships and 131 municipalities (103
cities and 28 villages) reported having lodging taxes in
effect for calendar year 1998. Notwithstanding the special
levies listed above, rates range from 1.0 percent to 6.0
percent. Approximately 78 percent of the lodging taxes
reported were at a 3 percent rate. For jurisdictions that
produced revenue, lodging tax collections for calendar year
1998 ranged from $357 in Madison Township (Richland County)
to $11,766,000 for the Franklin County CFA, with a statewide
total of $86,724,130.